Cryptocurrencies

interview with Nicolas Surleau from Capbloc! – Cryptocurrencies

We have previously mentioned in this article, the evolution of the profession of notary in response to the existence of the blockchain. This development is being accelerated by the coronavirus epidemic, which has forced many companies to go digital urgently in the face of the health crisis. Today, on Cryptocurrencies, we look at the various solutions provided by the blockchain to support the digitization of internal business processes. To do this, a few key questions to understand the issues, to which Nicolas Surleau, co-founder of the company Capbloc specializing in the use of blockchain to digitize a company’s administrative processes, to be accepted to answer! Many thanks to him for the time he was able to give to our editorial staff.


Hello Nicolas Surleau, thank you for accepting our interview. What do we mean by dematerializing the internal administration procedures of a company? What are the advantages ?

It should first be noted that the dematerialization we are talking about is a very recent possibility.

Indeed, these administration processes are subject to several legal obligations and are generally, under the paper form of the question, long and expensive. These include the keeping of a securities register, a register for general meetings where the various minutes are recorded, the annual convening of shareholders, and so on.

All these formalities are once again long and expensive, and must absolutely be performed under penalty of sanctions for the company. In reality, we quickly realize that several processes are sloppy in fact, because of the elements mentioned above. In addition, these formalities are potentially of real obstacles to the growth of certain companies, especially young startups who do not always have the necessary budgets to allocate.

For us, it was obvious that these processes had to be dematerialized, and especially digitized. The advantages of the digital switch-over are numerous, because this transition greatly reduces the costs associated with these formalities (no more need to send invitation letters with acknowledgment of receipt, no need to buy a register for minutes, etc …).

A real advantage is also the major time saver that you get by doing without all the associated paperwork. In addition, we can even go further than what is currently done on paper with, for example, tools for calculating the right to vote using dedicated tools. Here we are faced with a real paradigm shift that has only practical advantages for the company.

What role can blockchain play in such a scheme?

Its role is absolutely major. Since 2018, a decree has authorized certain dematerializations of these internal formalities on a shared recording system, and in particular the movement of securities.

Thanks to the blockchain, we can keep all movements reliably and immutable. In this case, the blockchain is a real guarantor and trusted third party for the movement of securities, in particular thanks to the immutable nature of the register, which thus qualifies the network as real proof in this specific context.

What are the prerequisites for a blockchain system to operate this kind of operation?

If we look closely at the 2018 decree that I mentioned earlier, we realize that the situation is quite ambiguous. Indeed, the legislator did not want to be binding and thus proposed a broad formulation of potentially exploitable solutions for dematerialization.

There is no limit to the technology used, the blockchain can be public or private, there is real freedom at this level. The same goes for the number of nodes, the number of actors on the network and all the other intrinsic characteristics of the distributed network employed. However, we can consider that from a purely strategic and professional point of view, in my opinion there are several prerequisites.

First of all, a geographical distribution of the recorded data, in order to disperse them between several servers in order to avoid potentially dangerous centralization in the event of a network malfunction, and thus have data backup in all circumstances. In addition, it is, I think, essential that the sensitive data of our companies be stored on our own territory, it clearly falls within the sovereignty of our data.

Pub

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

Finally, the blockchain must be recognized by several actors, and in particular those of figures and law, mainly lawyers and accountants. The idea here is, in a title movement process, to only store raw data. In Capbloc, we thus opted for a private blockchain solution, where the accountants are nodes, and therefore at the heart of the network.

Are the solutions offered by blockchain services concerning, for example, the management of General Meetings (AG) or shareholding, do they have the same probative value in the eyes of the law as a document certified by a notary, for example?

The law is evolving. A second decree in 2019 once again expanded what was possible. Now we can digitize AGs using digital time stamping.

However, although it is currently possible to trace movements of securities with the blockchain, AG cannot be time stamped using a blockchain. At least not yet.

Indeed, although the blockchain with regard to the securities has the same probative force as a document resulting from a notarial study, an electronic signature is necessary for the time-stamping of AGs, which currently excludes their management by blockchain which is not recognized as such. Thus, blockchain time stamp proof is now considered by regulation to be “imperfect proof”, that is to say that it is not enough, at least as far as AGs are concerned.

In your opinion, what future for this kind of solutions in our companies in France and abroad?

I fundamentally believe in new technologies and their benefits.

When we look, the internet revolution took many years to take hold and has been strongly criticized by some. It’s funny how nobody today can do without the internet.

It’s hard to imagine that this kind of solution like the one we offer at Capbloc do not have a future: the digitization of companies is the logical next step. Several of our neighboring countries are already exploiting these new technologies to improve the efficiency of their businesses.

Blockchain is a tool of proof, and this is what I believe will have its full potential in the future.. We can consider its applications for the creation of patents, bailiffs, and many other things. But all this will only be possible by a recognized and coherent legal framework.

There are very few insurmountable technological brakes for an application of blockchain within a company’s internal processes: the law must therefore follow the evolution of the uses of these technologies. I sincerely hope that France will not fall too far behind at this level, because everything is currently in the hands of the legislator.

Pub

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

Blockchain is now integrated into the heart of our businesses, the very sources of our country’s economy. Its implementation is made possible thanks to favorable legislative developments. However, the stakes are still very high when it comes to supervising this practice. It seems necessary that the legislator hear these considerations with the same ear. But like any paradigm shift, this transition to the era of blockchain applied to businesses must face the reluctance of actors who are completely ignorant of this technological approach. In addition, this blockchain approach to internal processes potentially calls into question the way in which certain players operate, such as accountants, for example. Thus, the ball is in the hands of legislators, as Nicolas Surleau concluded very well, but also in that of our professions of figures and law.

Tags

Related Articles

Back to top button
Close
Close